Open Market Operations

FEATURED ARTICLES ABOUT OPEN MARKET OPERATIONS - PAGE 5

MUMBAI: The Reserve Bank today announced that it will pump in Rs 12,000 crore in the market on June 12 by buying government securities to ease the liquidity situation. "Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on June 12, 2012," it said in a statement.

MUMBAI: The Reserve Bank will pump in Rs 12,000 crore in the market later this week by buying government securities. "Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the RBI has decided to conduct Open Market Operations (OMOs) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on May 25, 2012," it said in a statement. As part of the OMOs, the Reserve Bank of India (RBI)

In an interview with ET Now, Lakshmi Iyer , Head of Products & Fixed Income , Kotak Mutual Fund , talks about fiscal deficit and what can be expected from RBI's monetary policy on 15th of March. Excerpts: ET Now: The deficit in the financial system has climbed to Rs 180,000 crore. How much worse do you believe it is going to get? Do you believe that when refunds from the MCX IPO start coming back, the situation could look a little better?

Definition: Liquidity trap is a situation when expansionary monetary policy (increase in money supply) does not increase the interest rate, income and hence does not stimulate economic growth. Description: Liquidity trap is the extreme effect of monetary policy. It is a situation in which the general public is prepared to hold on to whatever amount of money is supplied, at a given rate of interest. They do so because of the fear of adverse events like deflation, war. In that case, a monetary policy carried out through open market operations has no effect on either the interest rate, or the level of income.

MUMBAI: The Reserve Bank of India will infuse as much as Rs 10,000 crore on October 7 by purchasing government securities to ease liquidity in the market. Based on the assessment of prevailing and evolving market conditions , the Reserve Bank has decided to conduct open market operations (OMOs) by purchasing government securities for an aggregate amount of Rs 10,000 crore on October 7, the RBI said in a release. The RBI will buy government securities maturing in 2015 (bearing interest rate of 7.17 per cent)

MUMBAI: The Reserve Bank today announced it will infuse Rs 7,000 crore in the system on June 7 by buying government securities to ease the liquidity situation. "Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing...government securities for an aggregate amount of Rs 7,000 crore on June 7, 2013," it said in a statement.

MUMBAI: The Reserve Bank today said it will pump in Rs 8,000 crore in the market on December 28 by buying government securities to ease the liquidity situation. "Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) by purchasing...government securities for an aggregate amount of Rs 8,000 crore on December 28, 2012," RBI said in a statement.

MUMBAI: The government has told the central bank to consider steps needed to augment the stock of securities available with the monetary policy managers to tackle excess capital inflows in the medium term. The surge in capital flows over the last few years has put pressure on Reserve Bank of India (RBI) to sterilise forex inflows. This would mean that the liquidity impact created in the form of rupees released after the mop-up of forex inflows is contained by the central bank by sale of government securities.

In a chat with ET Now, Vivek Rajpal, rates strategist, Nomura India , gives his outlook on RBI's credit policy next week and the rupee movement. Excerpts: ET Now: What are you expecting from next week's credit policy? Vivek Rajpal: We are expecting 25 bps of repo rate cut and probably a cautious language from Reserve Bank of India. ET Now: And CRR? Vivek Rajpal: No, we are not expecting a CRR cut because according to our calculations, liquidity is comfortable.

In an interview with ET Now, Vivek Rajpal , Rates Strategist, Nomura India , talks about the position of rupee and the impact of monetary policy on the market. Excerpts: ET Now: Focussing on the rupee in September and a good part of October, we did see it made a very strong turn and started gaining. We had a number of people coming out with revised estimates for it, saying that we see it going to levels of 48 or 49 against dollar by March of next year. Would you say that seems highly unlikely?